Tencent's Riot Games to cut around 530 jobs, or 11% of its workforce

Core Viewpoint - Riot Games is laying off approximately 530 employees, representing around 11% of its total workforce, as part of a strategy to refocus after years of significant expansion and investment [1][2] Group 1: Layoffs and Organizational Changes - The layoffs will take place over the next several weeks, with the company offering a minimum of six months' severance pay [1] - Riot Games is discontinuing its Riot Forge publishing unit and reducing the size of its "Legends of Runeterra" team [1] - The decision to lay off employees follows previous hiring freezes and cost-cutting measures that were deemed insufficient [3] Group 2: Business Strategy and Financial Context - The CEO stated that the company lacks a sharp focus and has too many ongoing projects, leading to unsustainable costs and risks to the core business [2] - The pandemic-induced surge in digital demand has waned, coinciding with rising prices for basic necessities, which has reduced consumer spending on gaming [2] - The company acknowledges that some significant investments have not yielded expected returns, necessitating these cuts to prioritize efforts that provide the most value to players [2][3]